Exploring Research and Development Tax Credits: Paper and Forest Products
Research and development (R&D) is critical to the paper and forest products industry. Market forces demand efficient harvesting and mill production, resource sustainability, product enhancements, regional use of variable raw materials and environmental remediation. You can address the cost and risk of research and development (R&D) by leveraging available federal, state, and local tax incentives.
Initiatives that may be eligible for R&D tax incentives include:
- Developing new or improved paper grades, packaging materials or wood products
- Implementing new technology to increase pulp yield, reduce waste, byproducts or environmental impact, or to comply with EPA rules
- Using experimental production runs before commercial release of a new or improved product
Whichever credit you explore, you must be prepared to defend reported R&D tax credits. The Deloitte Tax R&D team is a national practice of highly experienced tax professionals specializing in R&D tax incentives and includes former senior officials with the Internal Revenue Service (IRS) and Treasury who participated in drafting the legislation and regulations. These specialists can help you identify qualified R&D activities and assemble documentation to defend your claim, based on their extensive knowledge of the law and your industry.
The Deloitte Tax R&D approach includes a customizable tool that helps to automate the computation and information gathering, and a Quality Assurance team that reviews deliverables and computations.
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